Here's the chart;
Here's the article.
Saturday, August 15, 2009
Savings Rate in America
I like it when I see other people who are just as cynical as I am in that it confirms (at least to me) that I am not insane, but rather the rest of the country is. I like it even more when I see they use charts. But what I really like is when they quote Michael Hodges from the Grandfather Report (who some of you might know) was one of the primary motivators for me to start Cappy Cap.
Here's the chart;
Here's the article.
Here's the chart;
Here's the article.
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4 comments:
Typical debt-crazed consumer: "Durr hur? HRRRR!? DURRRRR!"
*Chapter 7*
I'm 27. My income is about 60% of the national average and I give 10% of that to charity. I have no debt and have enough savings to live for two years if I have to. I have absolutely no sympathy for these people who can't cover their debts. Learn a little self-control, you irresponsible morons.
I wonder how much of that dip is people spending less and paying down debt vs just declaring BK.
OK, so what the chart is saying is that since 1980, average income tripled, while credit card debt increased four time the rate that income grew.
I'd like to see a chart of per capita debt and per capita income over this time frame.
There are a few things I notice on this chart.
1. The debt to income growth ratio dropped measurably since 2008. I got $50 that says the Obamanauts will claim it is because he won the Presidential election.
2. The worst rates of climb in household debt started right in the middle of the Clinton administration, and have pretty much been climbing ever since. Things like the tech bubble in the 1998-2000 had a temporary leveling effect, but overall the household debt has risen a LOT faster then income.
3. This chart demonstrates that the current financial crisis is not the fault of the Government, or banks, it is the fault of consumers that are incapable of saying no the luxuries.
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